HOW TECHNOLOGY CAN BOOST INSURERS’ OPERATIONAL EFFICIENCY

“A typical large auto insurer could more than double profitability over 5 years by harnessing the power of digital” Digital McKinsey March 2017

In March 2017 McKinsey published “Time for Insurers to face Digital Reality”. It presented compelling evidence that First Movers and a few Fast Followers will win the lion’s share of premiums and profits (details in References). Laggards will fight over a long tail of low profits.

How to double profitability?

By tackling the complete insurance value chain from buying to settling claims to dramatically improve: -

More than just boosting operational efficiency; improving customer satisfaction and overall effectiveness

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The dual task of developing a new technology stack, while still addressing the legacy estate, raises many difficult questions for some insurance firms. Where should the bulk of investment go? Where should most of the resources be deployed? If you are building a new technology stack, should you move some legacy systems to the cloud anyway? Or is it better to leave them and switch directly over to the new stack?
Meanwhile, which processes should you be aiming to automate? At KPMG, we have an automation assessment tool that can help you identify where to focus & address regulatory and data governance issues.
The priority now is pre-emptive disruption to drive greater operational efficiency and deliver smarter, agile solutions. Ultimately, the goal is to redesign your business and operational model - customer experience sits right at its very heart.